Ask Reggi Your Question Now
Can you summarize NVRS 104.4403?
Uniform Commercial CodeOriginal Articles > Customers right to stop payment; burden of proof of loss.
Short Summary
This provision, part of the Nevada Revised Statutes under the Uniform Commercial Code, grants customers or authorized persons the right to stop payment of any item drawn on the customer’s account or close the account. The order to stop payment or close the account must be provided to the bank with reasonable certainty and within a reasonable time before certain events occur. If more than one person’s signature is required to draw on the account, any of these persons may stop payment or close the account. A stop-payment order is effective for 6 months, but lapses after 14 calendar days if the original order was oral and not confirmed in a record. The burden of proving the fact and amount of loss resulting from payment contrary to a stop-payment order or account closure lies with the customer. The loss may include damages for dishonor of subsequent items. No specific penalties are mentioned in this provision.
Whom does it apply to?
Customers or persons authorized to draw on the account
What does it govern?
Stop payment of items drawn on a customer's account or closing the account
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
Nevada